liability for accidents

Steven Shavell
From The New Palgrave Dictionary of Economics, Second Edition, 2008
Edited by Steven N. Durlauf and Lawrence E. Blume
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Abstract

Legal liability for accidents determines the circumstances under which injurers must compensate victims for harm. The effects of liability on incentives to reduce risk, on risk-bearing and insurance (both direct coverage for victims and liability coverage for injurers), and on administrative expenses are considered. Liability is also compared with other methods of controlling harmful activities, notably, with regulation and corrective taxation.
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How to cite this article

Shavell, Steven. "liability for accidents." The New Palgrave Dictionary of Economics. Second Edition. Eds. Steven N. Durlauf and Lawrence E. Blume. Palgrave Macmillan, 2008. The New Palgrave Dictionary of Economics Online. Palgrave Macmillan. 09 February 2010 <http://www.dictionaryofeconomics.com/article?id=pde2008_E000215> doi:10.1057/9780230226203.0966

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Table of Contents

  • Abstract
  • Keywords
  • Article
    • Incentives
      • Unilateral accidents and the level of care
      • Bilateral accidents and levels of care
      • Unilateral accidents, level of care, and level of activity
      • Bilateral accidents, levels of care, and levels of activity
    • Risk-bearing and insurance
    • Administrative costs
      • Strict liability versus negligence
      • Social desirability of the liability system and private motives to sue
    • Topics
      • Damages
      • Causation
      • Judgment-proof problem
      • Product liability
    • Liability versus other means of controlling risk
  • See Also
  • Bibliography
  • How to cite this article
 
 

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